The fund seeks to replicate the total return performance of the benchmark index, before fees and expenses, by investing in companies outside the United States.
The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
As part of its strategy, the fund employs a passive or indexing approach to attempt to approximate the investment performance of the Index.
Next, the research team invests significantly in equity securities included in the Index.
The Index consists of equity securities issued and traded in the US as well as international countries.
Also, the Index is estimated to consist of approximately 150 to 250 stocks of companies located in the U.S. and in at least three countries outside of the U.S., and may invest in up to 20 countries.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund may concentrate its investments in a particular country, region, industry or group of industries to the extent that the Index concentrates in a country, region, industry or group of industries.
The fund may also invest in American Depositary Receipts and Global Depositary Receipts based on the securities in the Index.
The fund seeks current income by investing in companies outside the United States.
The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team invests significantly in a diversified portfolio of fixed income instruments.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team reviews the valuation of the security relative to its peers.
In addition, the team focuses on companies in stable and growing sectors of the economy that generate sufficient revenue to meet their debt obligations.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund invests in corporate bonds, U.S. government and agency securities, master-limited partners, private debt, foreign sovereign bonds, convertible securities, bank loans, asset-backed securities, mortgage-backed securities, and cash equivalent instruments.
The fund may also invest in other investment companies, including other ETFs.
Additionally, the fund may also invest in various types of derivatives, including futures, options, credit default swaps, total return swaps and repurchase agreements.
The fund may invest in fixed income instruments of any maturity or duration.
The fund will typically invest a substantial portion of its net assets in securities of issuers with a range of credit ratings that have stable or improving fundamentals.
The fund may invest without limit in U.S. and non-U.S. dollar-denominated securities of U.S. and foreign issuers, including investing up to 20% of its net assets in issuers located in emerging market countries.
